tokenist.com
On Tuesday, April 18th, the cryptocurrency exchange Kraken announced that its European subsidiary received a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland. The news comes as the company is seeking to solidify its legal standing across multiple countries after its staking service became the target of the SEC in the US.
Kraken Obtains License From the Central Bank of Ireland
This Tuesday, the cryptocurrency exchange Kraken announced that Payward Europe Solutions Limited, its subsidiary on the continent, is now a registered Virtual Asset Service Provider (VASP) in Ireland. According to the press release, the license obtained from the Central Bank of Ireland signals that Kraken “follows Europe’s most robust anti-money laundering and compliance standards.”
Kraken also stated the registration signals its unyielding commitment to customers in Ireland, as well as across Europe. Mark Jennings, Kraken’s Head of European Operations took to opportunity to point out that a clear legal and regulatory framework is crucial for the future of crypto adoption and added that his company is continuously working with EU regulators in an effort to improve the digital assets landscape:
Clear and effective regulation is essential for the mainstream adoption of cryptocurrencies. As we bring innovative products and services to market, we’re committed to continuing to work with European regulators to operate compliantly under sensible, forward-looking crypto asset regulation. We’ve always put our clients first and believe in offering a compliant trading experience that leverages industry-leading customer service, robust security protocols, and a market-leading position in liquidity and volume for EUR crypto pairs.
Both the EU and the UK have become attractive locations for cryptocurrency companies to seek expansion. Local regulators have repeatedly been commended for a more proactive and sensible approach than their American counterparts and Coinbase’s CEO Brian Armstrong reportedly spoke favorably about recent developments in the region while considering a possible location for the HQ of the exchange’s planned offshore trading entity.
After Facing Setbacks in the US, Kraken is Seeking to Stabilize Internationally
Much like many other cryptocurrency companies, Kraken recently found itself in trouble with US regulators. In late November, the exchange was forced to make a $360,000 settlement with OFAC as it had allegedly allowed individuals in “Iran and elsewhere” to violate sanctions by trading digital assets on its platform.
More recently, it made an even larger settlement with the SEC which not only forced it to pay $30 million, but also to discontinue its crypto staking service in the US. The action also potentially threatens various other staking programs as Gary Gensler recently commented that all such services are essentially the same, and Coinbase’s CEO hinted that the Commission may be moving to ban the product class entirely in the United States.
Despite the pressure in the US, Kraken has been building elsewhere. Only weeks before registering with the Central Bank of Ireland, the cryptocurrency exchange revealed it had initiated the newly-required registration with the Ontario Securities Commission needed to keep its Canadian operation up and running.